Offset mortgage - should i sweep or save ???

lauren565

Hi all
i have a flexible plus mortgage with abbey national, where you can offset your savings against the balance of the mortgage. anyway i was reading some abbey national literature on this type of mortgage i have and it says that when you have a lump sum in the savings pot then you can 'sweep it'. This is you phone them up and say can you take this amount directly off the capital balance. Anyway i have about 1500 in the savings pot now, very good because only started making overpayments in march 2007, a big load of it is bank charges refunds that i put in there (thanks martin!!!).
When i rang abbey and said should i sweep it they said no. I thought if i swept it the capital balance on the mortgage would be less, therefore repayments less, therefore i could repay even more? Does this not make sense? What do you all think.... I am really confused now..... thanks, Lauren

silvercar

From the way you describe, that money is already being offset agains your outstanding balance. All that sweeping would do is permnantly reduce your mortgage balance by the savings rather than have the money available to you if you need it.

lauren565

thank you!